The movement of financial markets at the opening of trading earlier this week was seen to slow after the risk of the emergence of a new variant of Coronavirus at the end of last week slightly subsided.
The US dollar hovered around a 1-week low on investor concerns that the emergence of the Covid-19 variant, Omicron, which is once again a threat to economic recovery, will hamper the Federal Reserve's (Fed) policy tightening plans.
While the Euro remained moving weak earlier in the week it failed to capitalize on the weakness of the US dollar as investors still did not place confidence in the European central bank.
Most recently, a statement by one of the members of the European Central Bank (ECB) still hints that the central bank will continue to maintain policy easing which is seen to continue to put pressure on the current movement of the Euro.
On the price chart of the EUR/USD pair, the price was seen moving horizontally at the beginning of the week failing to continue the surge exhibited last Friday.
After the price soared from the 1.12000 support zone which was the lowest price -hit zone for the year, investors began to evaluate as an early signal for a reversal of the bullish trend.
The rise has also passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame with the daily rise last Friday recording around 120 pips of the spike.
But the rise failed to continue in Monday's trading yesterday when the price only hovered above the 1.12600 level with support at MA50.
Not yet giving a clearer movement signal, investors will be waiting for the latest indicators on the price chart while monitoring the development of Covid-19 Omicron contagion risk.
If the price increase is successful, the price increase is seen to return to the resistance zone at 1.14000 after 2 weeks of the price falling below that zone.
If the zone is successfully broken, the price will give a clearer signal of the price movement for the bullish trend with the next target likely to go up to 1.15000.
On the other hand, if the price moves back below yesterday's support level at 1.12600 and also passes the MA50 support, investors will expect the price decline to continue.
The support zone at 1.12000 will be tested again before the price decline that manages to break it will record the latest lows again for 2021.
